Here's another free report for the Monnos community!
The week continues with few emotions and few highlights for the week.
Bitcoin remains sideways in the range of $ 10700.
Cryptocurrencies have also reduced volatility and remained slightly stable.
Let's see if we can find some good opportunities for the week, read with us below.
The study below is not a guide to buying or selling. Manage your risk properly.
Market and Bitcoin Overview
Bitcoin Analysis 4h
Bitcoin is back to $ 10700.
Again, it is that boring scenario of lateralization where the price is hitting and, it does not have a main feeling.
Positive point is that we recovered from the fall in TRUMP (Covid) factors and the Bitmex case.
This shows that the market is strong, decentralized and would survive even a setback from one of the main brokers in the market.
I don't see any transactions, I still recommend caution, the best purchases are close to U $ 10k, as it was for those who bought it when it hit U $ 10,300.
Now it's a solitaire game.
The altcoins market (cryptocurrencies alternative to bitcoin) remains negative.
Without great emotions and without volume, the market continues to fall.
Check out our vision for the week.
Altcoins are in an adverse scenario.
With the DeFi fever over, there is little excitement on the market.
Our recommendation, in general, is to wait.
Total hash rate (TH / S)
The estimated number of terahashes per second that the bitcoin network is performing in the last 24 hours.
The Total Hash Rate (TH / s) is a metric to measure the mining power of the blockchain network. The higher the number of hashrates, the greater the security of the network and the greater its resistance to attacks in general.
It is an important metric for analyzing miners' investments in mining equipment and long-term investments.
Figure 1: Total hash rate on September 29th. Source: Blockchain.com
Figure 2: Total hash rate on October 5th. Source: Blockchain.com
As we said last week, the rate has been on an upward trend since September 25, which would indicate a rise in the price of Bitcoin, which was validated in the following days. On the same day Bitcoin started a timid climb, reaching the level of $ 10,950.00 on September 28th. As of September 30, the hash rate started to lose strength (Figure 1), as did the price of Bitcoin, which dropped until reaching the low of $ 10,374 on October 2.
In Figure 2, we can see a lateral trend in the rate, which also affected the price of Bitcoin, which continues to trade in the region of $ 10,500 to $ 10,600, on average. For now, this is a region of great resistance and analyzing the hash rate, there is no clear indication of purchase.
NVT (Moving Value)
The NTV is an indicator that indicates whether the price of Bitcoin is in line with the financial volume of the cryptocurrency in the last 90 days: if the price of the cryptocurrency has gone up and there is little volume in the market (few transactions in the currency), the indicator will always show a peak.
Figure 3: Bitcoin NVT, from September to October 2020. Source: Coinmetrics.io
Analyzing the graph, we can see that Bitcoin is in a region in a lateral trend and without much volume (NVT = 84.87), which can mean a turbulent region and not suitable for buying cryptocurrency. There are two possibilities for the week: the Bitcoin price falls and the NVT index goes down to a less turbulent and more accessible region for purchases or the price goes up and makes the NVT even higher, which could mean a further drop later .
Therefore, when we look at the fundamentalist side, there is also a lack of definition in the market.
Cryptocurrency of the Week - IOTA
IOTA is a cryptocurrency that does not use Blockchain to carry out transactions, but rather a DAG (Directed Acyclic Graphic) for its operation. And why does it stand out from the rest? Let's analyze?
As we said, IOTA does not use the concept of blocks and the chain of blocks to maintain its functioning, it uses a technology called The Tangle to maintain consensus and network security, without miners and without centralizing authority.
The main idea of the project, which is even on the official website, is the use of currency for a machine-machine economy, where cities and smart machines can use it to carry out transactions, without interference from anyone and without any fees to be paid for. the net. Some companies are already partnering with the IOTA Foundation for minor validations of projects that will be built, such as the implementation of IOTA in Jaguar cars or in Bosch appliances.
While Blockchain uses the Proof-of-Work consensus, IOTA maintains functionality with DAG technology, which is like a graph where each participant must confirm two or more transactions in order for their transaction to be confirmed on the network. The figure below illustrates this process of the chain, each ball in this tangle that looks like a ball of wool, is a transaction. The edges connect one transaction to the other and thus the network feeds itself and remains organized and decentralized.
Figure 4: Tangle's main network (IOTA). Source: http://tangle.glumb.de
If we analyze other cryptocurrency projects, IOTA remains very interesting from a technological point of view and a good long-term investment, with these great partnerships being made. The current value of the currency is quoted at $ 0.2719 dollars. Is IOTA the future of cryptocurrencies?
The cryptocurrency market will go through another week sideways.
At least, at the time of this analysis, we do not recommend any position as we do not have any currency with an optimistic bias.
Overall, October can be a month of few emotions on the market.
I believe that the US elections may influence price volatility.